Corporate

Company Snapshot

Property:Spanish Mountain Gold Project 
Ownership:100% Ownership 
Symbol:TSX.V: SPA | OTC: SPAZF 
Location:British Columbia, Canada 
Share Structure:Shares Issued & Outstanding:
Fully Diluted:
327 Million
407 Million
Market Capital:         ~ $90 Million 
Management:

Larry Yau, CEO
Sharon Ng, CFO
Judy Stoeterau, VP of Geology
Raymond Mah, Project Director
Doug Ramsey, Director, Sustainability and Indigenous Affairs

   

 

Board of Directors:Morris Beattie
Don Coxe
Dale Corman
Christopher Lattanzi
W. Terry MacLean
Sara Heston

Spanish Mountain is concurrently pursuing dual project objectives:

  1. Advance multi-million ounce reserve through critical project milestones towards production within a compressed timeline 
  1. Rapid resource expansion—ongoing drilling programs to add to the multimillion ounce resource

 

Highlights of PFS results

Current strategy prioritizes the development of the near-surface/ higher-grade multi-million ounce reserve as a standalone operation.  The PFS demonstrates a potential mining operation characterized by robust production profile, low operating cost and modest capital expenditures.

Project Economics

 Gold Price (USD)
 Units$1,200$1,400$1,600*$1,800$2,000$2,200$2,400
Pre-Tax Economics        
 NPV(5%)$M$125$486$848$1,209$1,570$1,931$2,293
 IRR%9%18%25%31%36%42%47%
 PaybackYrs5.44.03.22.72.42.11.9
 Cumulative Free Cashflow from Operations$M$1,040$1,583$2,127$2,670$3,214$3,758$4,301
Post-tax Economics        
 NPV(5%)$M$129$415$655$888$1,119$1,350$1,580
 IRR%9%16%22%27%31%36%39%
 PaybackYrs5.54.03.32.82.52.22.0
 Cumulative Free Cashflow from Operations$M$1,041$1,454$1,797$2,140$2,484$2,828$3,173

* PFS Base Case

Reserve

The Project’s Mineral Reserves, which are a subset of the M&I Mineral Resources, are based on the mine plan developed for the PFS.  Mineral Reserves are estimated in accordance with the CIM 2019 Best Practices Guidelines and are classified using the 2014 CIM Definition Standards.

 Tonnage (Mt)Au Grade (g/t)Gold (Moz)Ag Grade (g/t)Silver (Moz)
Proven40.80.791.030.670.88
Probable55.10.741.310.741.30
Total P&P Reserve95.90.762.340.712.18

 

Select Operational and Cost Metrics 

 UnitYrs 1-6
Avg.
LOM
Avg.
 
Gold Gradeg/t0.880.76 
Annual Gold ProductionKoz183150(peak production 211Koz)
Annual Silver ProductionKoz6863 
Cash Cost /ozUS$$602$696 
All-in-sustainable Cost/ozUS$$707$801 
Total Cost/ ozUS$$974$1,068 

 

Unit Cost of Production

 

Unit

CAD

USD

Mining$/t mined$2.22$1.69
Mining$/t milled$10.80$8.21
Processing$/t milled$6.58$5.00
G&A$/t milled$1.36$1.04
TSF$/t milled$0.17$0.13
Water treatment$/t milled$0.47$0.36
Total$/t milled$19.38$14.73

 

Initial Capital Expenditures

Direct CostsC$MUS$M
Overall Site$26$19
Open Pit Mining$73$56
Ore Handling$34$26
Process$125$95
Tailings and Water Management$40$30
Environmental Monitoring$2$2
On-site Infrastructures$42$32
Off-site Infrastructures$64$49
Water treatment Plant$10$7
Total Direct Costs$416$316
Project Indirects$102$78
Owner's Costs$14$10
Contingencies$75$57
Total$607$461

 

Resource Expansion

The Company has an ongoing campaign to continue its track record of resource expansion.

As part of the PFS, an update of the Mineral Resources has been prepared based on the pit shell developed using assumed cost parameters and assumptions.  The Project’s Mineral Resources, inclusive of the Mineral Reserves reported above, are as follows:

 

ClassificationRun of Mine
(Mt)
Gold Grade
(g/t)
Silver Grade
(g/t)
Contained Gold
(Moz)
Contained Silver
(Moz)
Measured68.40.590.671.31.5
Indicated225.70.470.733.45.3
M&I Resources294.20.500.724.76.8
Inferred Resource18.30.630.760.40.4

 

*See Cautionary Statement

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